Preferential Policies:
Tax Benefits
Income Tax for Enterprises with Foreign Investment and Foreign Enterprises
The foreign-funded enterprise with an operation period of over ten years can enjoy free enterprise income tax for two years, and half the tax rate for following three years. After the period of tax exemption and reduction expires, if the foreign-funded enterprise's annual export value amounts to 70% or more of its total sales volume, it can continue to enjoy half the tax rate; if the foreign-funded enterprise is a high-tech company, it is entitled to half the tax rate for three more years.
Re-investment Tax Reimbursement
Any foreign investor of an enterprise with foreign investment which reinvests its share of profit obtained from the enterprise directly into that enterprise by increasing its registered capital. or which uses the profit as capital investment to establish other enterprises with foreign investment to operate for a period of not less than five years, shall be approved by the tax authorities of an application filed by the investor, be refunded 40% of the income tax already paid on the re-invested amount. Those who reinvest in export enterprises or technologically advanced enterprises may obtain a refund of all the income tax already paid on the reinvested amount.
Customs Duties
1.Encouraged projects in accordance with Guide Content of Foreign Investment can enjoy free import duty in importing machinery for self use purpose.
2.The foreign-funded project is entitled to free import duty in importing raw materials, components and parts, which are for being manufactured or assembled for export.
3. The encouraged foreign-funded project, which procures domestic-made machinery, can get all the value-added tax back from the government. The encouraged foreign-funded project, which procures domestic-made machinery, can use 40% of the machinery value to offset enterprise income tax.
Withholding Income Tax
Any foreign investor which has no establishment or place in China but derives profits, interest, rent, royalties or other income from Ningbo may be levied at the reduced rate of 10%, except for exemption of the income tax prescribed by the law. For those who would provide advanced technology, or invest in capital or equipment with the preferential terms, exemption or reduction may be allowed upon approval.
Remittance Tax
Profits gained by the foreign investors from the enterprises shall be exempted from remittance tax when they remit them out of China.
